"Do they really have to get the biggest bear on the street to come on CNBC, $33 price target, really? When was the last time it traded at $33? I'll answer myself, December 2010, good job pal."
Mr Moffet has to see something that others don't. I can't see $33 -- a 22% slide and yield back up to 6.2% seems way out there -- unless he thinks the dividend will be reduced.
A backstop for both T & VZ could be share buybacks. At some point the annual $15 bil to $20 bil cut into free cash flow from 4g build out will start to go into other projects and/or share buybacks -- plenty of safety for the dividends.
If interest rates start to rise it will probably mean the economy is strong and that will probably mean more smart phones and other 4g devices -- and the pension fund non-cash expenses may reverse into non-cash gains.
It's firms like FTR with big pension fund liabilities and junk credit ratings who will see a double whammy -- low rates hurt pension fund performance and they can't refi corporate debt to lower corporate interest expense to offset pension losses.